Flight Centre Travel Group Limited (ASX: FLT)

Stronger shareholder returns: BlackRock Group ceased to be substantial holder of the Group since 16 March 18, while Bennelong Australian Equity Partners Ltd became the substantial holder since 7 March 18 by holding 8,250,920 securities with 8.1639 per cent of the voting power. The Group updated its guidance for 2018 after recording a strong growth for first half for 2018. It released its financials for the period (six months ending on 31 December 17) and revealed that its PBT increased by 23.2 per cent and amounted to $139.4 million as compared to the corresponding period in the prior year. At 31 December 17, FLT had $1.2 billion of global cash investment portfolio, which included $468.4 million of general cash for the Company. The Directors declared a fully franked interim dividend of 60 cents per share which will be paid on 13 April 18. It represents a 59 per cent of return on NPAT which is 33 per cent higher as compared to the same period in the prior year. The transformation program that was initiated in late FY17 started gaining momentum and its main purpose was to ensure that FLT achieves a profitable growth throughout the economic cycle. The stock prices were up by 28.45 per cent in the past six months and were slightly down by 2.65 per cent in the past one week. We recommend to “Hold” the stock at the current market price of $57.86, given the tourism momentum building up ahead of the holiday period.
 

Net Margin Seasonality Trend (Source: Company Reports)
 

Crown Resorts Limited (ASX: CWN)

Capital Management Initiatives continue: The Group updated the market about the buy-back of the outstanding Subordinated Notes that were listed on ASX. It reported that as on 23 March 2018, a cumulative total of 1,276,329 of Notes were bought back and about 4,043,371 of Notes were still outstanding which still have not been bought back. Meanwhile, James Packer, the director resigned from his position due to some personal reasons. The Group disclosed to ASX that James Packer holds his interest in Consolidated Press Holdings Pty Limited and in CPH Crown Holdings Pty Limited; and CPH sold 8,240,933 of the ordinary shares in Crown Resorts Limited. Recently, Crown entered into an agreement with a subsidiary of Wynn Resorts Limited to sell its interest in a 34.6 acre of a vacant site on Las Vegas Boulevard for US $300 million. The share prices were up by 13.22 in the past six months and down by 2.37 per cent in the past one week. Given the decent underlying fundamentals, we recommend to “buy” the stock at the current market price of $12.80
 

Financial Performance (Source: Company Reports)
 

SeaLink Travel Group Limited (ASX: SLK)

Expects growth from acquisition move:SeaLink announced that it completed the acquisition of the Fraser Island Kingfisher Bay Resort Group on Fraser Island, Queensland for $43 million from Cosmos Australia Pty Ltd and fulfilled all its conditions related to the acquisition. The SeaLink Fraser Island acquisition comprised of four distinct, profitable and well-established tourism and transport operations – Kingfisher Bay Resort, Eurong Beach Resort, Fraser Explorer Tours and Fraser Island Ferries and it accounts for 90 per cent of accommodation rooms on Fraser Island. It is expected that this acquisition will generate earnings in FY19 and will deliver a further value to its shareholders. On the other hand, net profit after tax and revenue for first half of 2018 was 13.7 per cent and 4.7 per cent below as compared to first half of 2017 and amounted to $11.3 million and $100.8 million, respectively. The share prices were down by 6.54 per cent in the past six months but managed to climb up by 5.26 per cent in the past one month. The stock is a “Speculative Buy” at the current market price of $4.06
 

Assets’ Growth Trend (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.